Black Friday, Card Usage, And Loan Balances

Five can't-miss data points this week on CreditUnions.com.

 
 

From Black Friday deals and credit card activity to average loan balances and the loan-to-share ratio, this week, CreditUnions.com shines a spotlight on credit union lending.

Here are five can't-miss data points:

2,500

When Dan Clarke joined Service Credit Union, he brought with him a history of turning Black Friday into a member benefit bonanza, with steals and deals on loans and deposits alike. The credit union's chief operating officer now uses Black Friday specials primarily to thank existing members, but they also open doors to new relationships. In 2017, the credit union opened more than 2,500 Black Friday special CD accounts.

Read: Black Friday Brings Bright Deals

 

 

11%

In the third quarter of 2016, Michigan State University Federal Credit Union targeted its inactive credit card users with a marketing flyer informing them of the card’s integration with Apple Pay, Samsung Pay, Google Pay, and VISA Checkout. Response was immediate and significant. The flyer did not offer a call to action but still netted an 11% response rate and brought in more than $400,000 in account balances in three months. Why did the credit union send this mailer? Why did it work so well?

Read: The Marketing Mailer For Mobile Wallets

$245,023

Which credit union leads the industry in average loan balance? That would be California Lithuanian, with an average balance of $245,023. The rest of the top 10 includes four additional California credit unions, three from New York, one from Georgia, and one from Washington, DC. Three of the top 10 have assets greater than $1 billion and two are smaller than $25 million. Who made the list?

Read: Leaders In Average Loan Balances (2Q18)

0.67%

The 5,596 credit unions in the United States reported a combined loan portfolio of $1.0 trillion as of June 30, 2018. Asset quality has improved on a national level in the past 12 months. Total delinquency was down 8 basis points, from 0.75% to 0.67%, at midyear. Want to learn more about the industry's loan portfolio?

Read: Lending By The Numbers (2Q18)

82.9%

The loan-to-share ratio is an insightful measure of a credit union’s liquidity. Driven by lending volume and deposit acquisition, the ratio represents a balancing act between two sides of the balance sheet. Generally, a higher loan-to-share ratio indicates a credit union is taking on higher risk for a greater profit. In the second quarter of 2018, U.S. credit unions reported an average loan-to-share ratio of 82.9%. This is the highest rate since December 31, 2008 — when it was 83.2% — and is 16.1 percentage points higher than when the ratio bottomed out in the third quarter of 2013.

Read: A 5-Year Look At The Loan-To-Share Ratio

Happy Reading!

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Nov. 5, 2018


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